Chapter 7 Management and Leadership PDF

Because learning changes everything. ® Chapter 7 Management and Leadership © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior...

Because learning changes everything. ® Chapter 7 Management and Leadership © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.  Learning Objectives LO 7-4 Describe the organizing function of management. LO 7-5 Explain the differences between leaders and managers, and describe the various leadership styles. LO 7-6 Summarize the five steps of the control function of management. © McGraw Hill LLC 3  Warm Up Activity 1 1. Who are managers? What do you think managers do daily? 2. Are all managers leaders and all leaders managers? 3. Do managers differ in their levels? 4. If they do, do they require different skills at different levels of management © McGraw Hill LLC 4  Figure 7.4 Levels of Management What do you think are the responsibilities of managers at each level? © McGraw Hill LLC 5  Organizing: Creating a Unified System 1 Management Levels Top management — Highest level, consisting of the president and other key company executives who develop strategic plans. CEO, COO, CFO, CIO. Middle management — Includes general managers, division managers, and branch and plant managers who are responsible for tactical planning and controlling. Supervisory management — Those directly responsible for supervising workers and evaluating their daily performance. © McGraw Hill LLC 6  Organizing: Creating a Unified System 1 Top Management Levels : CE O - Chief Executive Officer: President/ Responsible for change and top-level decisions CO O – Chief Operating Officer: Right hand of CEO/ Controlling Operations/ Rewarding employees/ Cost Cutting Function CFO – Chief Financial Officer: Obtains funds/ Plans Budgets est CI O – Chief Information Officer: Collects right information © McGraw Hill LLC 7  Organizing: Creating a Unified System 2 Tasks and Skills at Different Levels of Management Technical skills — The ability to perform tasks in a specific discipline or department. Eg. Graphic design, financial accounting, programming Human relations skills — Communication and motivation; they enable managers to work through and with people. Eg. Communication, supportiveness, training and coaching Conceptual skills — The ability to picture the organization as a whole and the relationship among its various parts. Eg. Planning, organizing, controlling, problem analysis, decision making © McGraw Hill LLC 8  Figure 7.5 Skills Needed at Various Levels of Management © McGraw Hill LLC 9  Exit Ticket - "Explorer Level" 🧭 Which type of skill is most important for top managers according to the diagram? a) Technical skills b) Human relations skills c) Conceptual skills d) Supervisory skills What is the primary role of middle managers as depicted in the diagram? a) Setting the overall strategy b) Direct supervision of non-managerial employees c) Implementing policies and plans from top management d) None of the above © McGraw Hill LLC 11  Exit Ticket - "Explorer Level" 🧭 Which type of skill is most important for top managers according to the diagram? a) Technical skills b) Human relations skills c) Conceptual skills d) Supervisory skills What is the primary role of middle managers as depicted in the diagram? a) Setting the overall strategy b) Direct supervision of non-managerial employees c) Implementing policies and plans from top management d) None of the above © McGraw Hill LLC 12  Exit Ticket - "Adventurer Level" Which level of management requires the highest proficiency in technical skills according to the diagram? a) Top Managers b) Middle Managers c) First-Line Managers d) All levels require the same proficiency According to the pyramid, which level of management is directly responsible for the supervision of employees? a) Top Management b) Middle Management c) Supervisory (First-Line) Management d) Non-supervisory Employees © McGraw Hill LLC 13  Exit Ticket - "Adventurer Level" Which level of management requires the highest proficiency in technical skills according to the diagram? a) Top Managers b) Middle Managers c) First-Line Managers d) All levels require the same proficiency According to the pyramid, which level of management is directly responsible for the supervision of non-managerial employees? a) Top Management b) Middle Management c) Supervisory (First-Line) Management d) Non-supervisory Employees © McGraw Hill LLC 14  Exit Ticket - "Hero Level" 🏆 Explain why conceptual skills are more important for top managers compared to first-line managers? Discuss the difference in responsibilities between top management and supervisory (first-line) management as shown in the pyramid? © McGraw Hill LLC 15  Exit Ticket Explain why conceptual skills are more important for top managers compared to first-line managers. Answer: Conceptual skills are more important for top managers because they need to develop and implement the overall strategy of the organization. They must understand complex relationships within the organization and anticipate the broader impacts of their decisions. First-line managers, on the other hand, are more focused on daily operations and therefore rely more on technical skills. Discuss the difference in responsibilities between top management and supervisory (first-line) management as shown in the pyramid. Answer: Top management is responsible for setting the organization's overall direction, making strategic decisions, and establishing long-term goals. They focus on external factors such as market trends and organizational growth. Supervisory (first-line) management, however, is directly involved in overseeing the day-to-day operations and managing non-managerial employees. Their focus is on implementing the plans and policies created by higher management levels and ensuring that employees perform their tasks effectively. © McGraw Hill LLC 16  Organizing: Creating a Unified System 3 Staffing: Getting and Keeping the Right People Staffing — Hiring, motivating, and retaining the best people available to accomplish the company’s objectives. Staffing is critical, especially at high-tech firms. Many people are not willing to work at companies unless they are treated well with fair pay. Eg. Google’s gourmet chef cook up free lunches, massage center and gym facilities. © McGraw Hill LLC 17  Worksheet 1 to be discussed in class © McGraw Hill LLC 18  Leading: Providing Continuous Vision and Values 1 https://www.youtube.com/watch?v=CYb6suwxDv8 © McGraw Hill LLC 19  Staffing’s New Normal Managers today face new challenges in staffing and managing. The COVID-19 pandemic upended traditional work life with telecommuting and remote work. Along with the “Great Resignation,” millions never returned to work, and millions more preferred to continue working remotely. Managers know the only way to attract and keep workers is to create an ideal work environment by: 1. Dissolving traditional workplace boundaries. 2. Defining new work parameters that build employee collaboration and empowerment. © McGraw Hill LLC Nuthawut Somsuk/iStock/Getty Images Plus/Getty Images 20  LO 7-5 Explain the differences between leaders and managers, and describe the various leadership styles. Leading: Providing Continuous Vision and Values 1 Leaders must: Communicate a vision and rally others around that vision. Eg. David Calhoun vision and leadership at Boeing. Establish corporate values that are linked to goals. What are the most wanted leader traits in the workplace? Promote corporate ethics and ethical decision-making. Embrace change. Becoming more efficient and effective. Stress accountability and responsibility. Eg. Financial Crisis of 2008 Transparency — The presentation of the company’s facts and figures in a way that is clear and apparent to all stakeholders. Which is the most important of these characteristics? Do you © McGraw Hill LLC have to have a high position to be a leader? 21  The Importance of Culture Microsoft boss Satya Nadella likes to say that the “C” in CEO stands for culture. In his time in charge of the tech giant, Nadella has fostered a company culture centered around empathy and growth that serves as the root of every decision made at Microsoft. In fact, Nadella claims that culture “defines the success of every organization.” Do you agree or disagree with this statement? © McGraw Hill LLC Stephen Brashear/Getty Images News/Getty Images 22  Ambition versus Being a Team Player Imagine this: As a first-line manager, you have uncovered new information that your department head is not aware of and probably will not see. Your findings indicate that your manager’s recent plan has a very high possibility of failing. If the plan does fail, the manager most certainly will be demoted or fired, and you’re the candidate most likely to fill the vacancy. Will you give your department head the information or keep it to yourself? What is the ethical thing to do? What might be the consequences of your decision? © McGraw Hill LLC 23  In Class Activity Instructions: 1. Group will be assigned the task of building the tallest paper tower using only paper and tape 2. One leader in each group will be assigned one of the following leadership styles: -  Making all the decisions without input from the group  Encourages group input and decisions are made collectively  Offers little guidance and lets the group work independently © McGraw Hill LLC Stephen Brashear/Getty Images News/Getty Images 24  Leading: Providing Continuous Vision and Values 2 Leadership Styles: Laissez-faire, Democratic & Autocratic Styles of Leadership (youtu be.com) Autocratic leadership — Make managerial decisions without consulting others. Effective in emergencies or with new, unskilled workers Participative or democratic leadership — Managers and employees work together to make decisions. Usually increases job satisfaction Free-rein leadership — Managers set objectives and employees are relatively free to do whatever it takes to accomplish those objectives. Most successful when supervising professionals © McGraw Hill LLC 25  Figure 7.6 Various Leadership Styles – What do you see? © McGraw Hill LLC Source: Robert Tannenbaum and Warren Schmidt, “How to Choose a Leadership Pattern,” Harvard Business Review, May–June 1973. 26  Autocratic Leadership Steve Jobs, the late cofounder and CEO of Apple, revolutionized global communication through the release of iconic devices like the iPhone and iPad. He was also famous for his autocratic leadership style, preferring to make decisions himself rather than collaborating closely with others for guidance. Why do you think Jobs’s leadership style succeeded in a high-pressure, cutting-edge environment like Apple? © McGraw Hill LLC Terry Schmitt/UPI/Alamy Stock Photo 27  Which leadership style would you prefer managers in your future career to use? A. Autocratic leadership B. Participative or democratic leadership C. Free-rein leadership © McGraw Hill LLC  LO 7-5 Explain the differences between leaders and managers, and describe the various leadership Leading: Providing Continuous Vision and styles. Values 1 Which leadership style is the best? Is there such a thing as a leadership trait effective in all situations? © McGraw Hill LLC  LO 7-5 Explain the differences between leaders and managers, and describe the various leadership styles. Who is this leader? A. Leader involves team members in decision-making but retains final authority. B. Leader gives total freedom to employees to make decisions and solve problems on their own. C. Leader makes all the decisions without consulting employees and closely monitors work. © McGraw Hill LLC  LO 7-5 Explain the differences between leaders and managers, and describe the various leadership styles. Who is this leader? A. A team manager holds a meeting to gather everyone's input before making the final decision on the project approach. B. A manager assigns tasks and expects them to be completed exactly as directed without any employee input. C. A supervisor gives employees full responsibility to design and execute their © McGraw Hill LLC own projects with minimal oversight.  Leading: Providing Continuous Vision and Values 3 Empowering Workers Empowerment — Progressive leaders give employees the authority to make decisions on their own without consulting a manager. Customer needs are handled quickly. Manager’s role becomes less of a boss and more of a coach. Enabling — Giving workers the education and tools they need to make decisions. © McGraw Hill LLC 33  Group the following words into “Directing” and “Empowering” 1.Encouraging ownership 2.Providing direct orders 3.Delegating authority 4.Giving assignments 5.Fostering independence 6.Offering autonomy 7.Enforcing rules 8.Trusting team members 9.Supervising closely 10.Explaining routines 11.Supporting creativity 12.Assigning tasks 13.Monitoring performance 14.Motivating self-management 15.Clarifying policies 16.Making decisions for employees 17.Encouraging initiative 18.Providing resources 19.Setting strict guidelines 20.Enabling decision-making © McGraw Hill LLC 34  Empowerment Fast-food restaurant employees often don’t have the skill and experience to make empowerment work very well. Instead, their managers generally have to supervise and direct them fairly closely. What do you think are some of the consequences for managers of not being able to empower their staff with decision-making authority? © McGraw Hill LLC SOPA Images Limited/Alamy Stock Photo 35  Leading: Providing Continuous Vision and Values 4 Managing Knowledge Knowledge management — Finding the right information, keeping the information in a readily accessible place, and making the information known to everyone in the firm. Keeps people from duplicating the work. Rise of big data requires determining what is most important. It’s as important to know what’s not working as it is to know what is working. © McGraw Hill LLC 36  Controlling: Making Sure It Works 1 Control Function Measures performance relative to planned objectives. Rewards people for work well done. Takes necessary corrective action. © McGraw Hill LLC 37  Controlling: Making Sure It Works 2 Controlling: Making Sure It Works Without clear standards, control is impossible! Goals must be specific, attainable, and measurable. Measures of success are usually financial. Accounting and Finance are often foundations for control systems. Specific vs. vague goals © McGraw Hill LLC 38  Figure 7.7 The Control Process © McGraw Hill LLC 39  Performance in Education One way colleges and universities measure their performance is to track the number of students who complete their degrees or who graduate within a certain number of years. What are some of the factors that could affect the achievement of this performance standard, and how do college administrators take corrective action when necessary? © McGraw Hill LLC kali9/E+/Getty Images 40  Controlling: Making Sure It Works 2 A Key Criterion for Measurement: Customer Satisfaction Always exceed customer expectations! Traditional forms of measuring success are financial. Pleasing employees, stakeholders, and customers is important. External customers — Dealers, who buy products to sell to others, and ultimate customers (or end users), who buy products for their own use. Internal customers — Individuals and units within the firm that receive services from other individuals or units. © McGraw Hill LLC 42  TESTPREP 3 How does enabling help achieve empowerment? What are the five steps in the control process? What’s the difference between internal and external customers? © McGraw Hill LLC 43  End of Main Content Because learning changes everything. ® www.mheducation.com © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.